COLOMBO, Sri Lanka (AP) — Sri Lanka's president, who had announced he would resign Wednesday, has fled the country after months of turmoil culminated in protesters converging on the presidential palace. Here's what’s happening in Sri Lanka:
— The country is hurtling toward bankruptcy
— Daily essentials including food and medicine are scarce
— Political corruption has deepened mistrust in the government
— The double whammy of government and economic instability is further complicating recovery
Sri Lanka’s prime minister, who said he'll step down after a new government is installed, says the island nation’s debt-laden economy has “collapsed” as it runs out of money to pay for food, fuel and medicine. It's been relying on help from neighboring India, China and from the International Monetary Fund.
Outgoing Prime Minister Ranil Wickremesinghe, who took office in May, was emphasizing the monumental task he faces in turning around an economy he said is heading for “rock bottom.”
Sri Lankans are skipping meals as they endure shortages, lining up for hours to try to buy scarce fuel and cooking gas. It's a harsh reality for a country whose economy had been growing quickly, with a growing and comfortable middle class, until the latest crisis deepened.
Here's the situation in Sri Lanka:
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HOW SERIOUS IS THIS CRISIS?
The government owes $51 billion and is unable to make interest payments on its loans, let alone put a dent in the amount borrowed. Tourism, an important engine of economic growth, has sputtered because of the pandemic and concerns about safety after terror attacks in 2019. And its currency has collapsed by 80%, making imports more expensive and worsening inflation that is already out of control, with food costs...
